tv Countdown to the Closing Bell With Liz Claman FOX Business October 20, 2017 3:00pm-4:00pm EDT
market's up 128. another day, another record, i'll take it. pretty good stuff. liz claman is going to take you from here. and one of the big questions, liz, is janet yellen going to stay as head of the federal reserve? liz: i know and, folks, this does matter; right? because what you see here, a gain of 137 points has something to do with a little bit of clarity. we're about to get -- blake's getting in front of a camera, we're going to give you more on the fed. but what it seems to be calming the markets, we have the volatility index, i need to quickly check this for you. now below ten. that is, again, heading back down to all time lows. right now we're standing at 9.85 for the volatility index. well, the senate stays up late last night and the markets love it today. the dow rallying at this hour after tax reform is one step closer to reality.
the one side deal to pass the $4 trillion blueprint of the budget unlocking that door to tax reform to begin and house speaker paul ryan confirmation that there will be a fourth tax bracket dedicated solely for taxing the rich. fair and balanced reaction is the budget now gets kicked to the house. new york republican congressman tom reid, democratic congressman of california, these are two high tax states that they come from. they'll gaze into their crystal ball and see if the house can make this budget revenue neutral. nothing neutral about this: one single. >> yes, he is. >> you're made by a new york mets fan turning into a silent rally cry for the new york yankees and turning a nice profit at one small business in chicago. we'll tell you why this small business is giving that thumbs down heard around the world a thumbs-up. and it's been nearly two months since hurricane harvey
trash the texas oil fields dragging gasoline prices up across the country. we have the ceo of drilling service company canary with the latest report from the front lines. we're less than an hour. we're not allowed to leave because we're about to start the countdown. ♪ ♪ liz: breaking news with halloween just 11 days away, we just got this intraday chart up, and you can see that the vix with 11 days away from volatility is starting to scare away the bears. right now the vix volatility index sitting below ten. this is a fear index that let's you know how much concern, worry, and angst is in the market. the more it goes, the more people feel it's really calm out there and the coast is clear. sometimes this is the sign of a market top. but right now, we are keeping a eye on it. the promise of the tax reform is really sending a bull
stampeding to never-before-seen highs. right now, all three major embassies on track to end the day at a record. all three of them and close out the week on quite the blockbuster. you talk about dow 23,000, we're at 23,295. over just a couple of days. both the dow and the s&p are looking at six consecutive weeks of gains. financials are leading the charge on wall street at this hour. we're looking at goldman sachs and jp morgan. they're sitting at the top of the dow while bank of america is leading the s&p 500 and hitting a nine-year high. look at this. we have goldman up nearly 2%. b of a is up 2% fully. wells fargo up 2%. so we're watching these financials help bring along the rally. they often say, in case you've never heard this. but you can't really have a full throated rally without the financials coming along with it. investors are cleaning out shares of procter & gamble out of their portfolios today. the maker of tide dedetergent and paper towels falling after reporting another quarter of
somewhat sluggish growth. stock is down four and a quarter percent right now or $3.89. traders are pushing the sell button on the consumer products giant, even despite the company's big victory over activist investor necessarily who was pushing very hard to get on the board to change things up. to the white house where questions continue to swirl over president trump's election of just who will be the next fed chair, the press briefing just wraps up 20 minutes ago. blake burman, we have some inside scoop from our own maria bartiromo that can clarify. and does it narrow down? because yesterday we talked about the five candidates, so we see a bit of a narrowing down right here on fox business; right? >> we have. so those five being janet yellen, gary cohn, and john taylor. we've been giving you these five names for the better portion of a week now. but maria bartiromo earlier this morning here at the white house sitting down with the president asked him about this, and it appeared, liz,
maybe he is down at this point to two, possibly even three of the five. here was his answer to maria this morning when maria asked him who he wants leading the federal reserve. >> well, as you know i've been seeing a number of people. and most people are saying it's down to two. mr. taylor, mr. powell. i also met with janet yellen, who i like a lot. i really like her a lot, so i have three people that i'm looking at, and there are a couple of others. i will say i will make my decision shortly. pretty shortly. >> the president there not mentioning his top economic adviser gary cohn also not mentioning kevin. however, also mentioning janet yellen. that is a remarkable 180-degree turn from the campaign trail in which he claimed that yellen was at points too political. should be ashamed of herself. essentially, he said, that he was a political arm of president obama and there to
help hillary clinton get elected. so at the press briefing this afternoon, i asked sarah sanders, well, what's changed? >> i think he's been having the opportunity to spend some time directly communicating with one another, certainly through this process. but beyond that, again, i'm not going to weigh any further into this process and where we are, other than the fact that the president will make an announcement on it soon. >> the president says we'll make that announcement soon. leaves her agent november 3rd, so this is coming at some point in the next two weeks. by the way, janet yellen was at the white house today meeting with gary cohn. you can put down the sirens on that one, i'm told. it was just a standard meeting. nothing to do with the fed. kohn, by the way, has recused himself from the search process because he's a final contender. liz: we're checking fed on futures, which gives us indication on the bets and the possibility of a december hike. yesterday, blake, they were at 87% for december. and today, they've gone up to
what? 91%, melanie? about 91%. so we're just nine percentage points that we will see a hike. blake, thank you. by the way, you could argue that the gains we're seeing in the stock market today really do not so much to any clarification on who will run the fed but on something that happened last night. the senate last night kick starting republicans' massive tax reform effort after passing a $4 trillion budget deal 51-49 with senator rand paul, the lone republican with the "no" vote. however, even though a fiscal year 2018 budget blueprint passed the senate, both the house and the senate still need to agree on this final budget resolution, rather, between their two different versions of the measure with the house plan calling for revenue neutral tax reform. meaning not adding to the deficit. that is a hard trick to pull off. here to discuss the hurdles the gop still needs to jump over, a fox business exclusive with representative tom reid
of new york who serves on the house ways and means committee. welcome, congressman. as a republican, i want to just get right off to this. you must have been happy last night that the senate is pushing it back to you all. but now you've got a big mountain to climb, and that is getting things revenue neutral on this budget. how are you going to do that? because right now, i've seen a lot of guesstimates that say it adds to the deficit. >> well, you know, obviously, last night was good news out of the senate. they moved. and now we're going to take up that vehicle, and i'm very confident we'll get it to the finish line in the house. that sets up tax reform. and as you talk about revenue neutrality, obviously, that takes up a difficult task. and the time is now and upon us to get this done for the american people. liz: well, one way that you could get in more revenue to erase whatever debt is being compiled with these new plans, is this so-called salt plan the -- i guess in essence, it's really for high-taxed states, but it would affect all states.
that they would eliminate the deduction for state and local taxes that people in new york, california, and higher-taxed states have depended on to even out a very hefty tax bill overall. you are from the state of new york. are you for eliminating this deduction or against it like your fellow republican compatriots in new york peter king and a few others on the democratic side? >> well, of course, when you talk about state and local tax deduction coming from new york, it's something that i've made my thoughts known on from day one. but i do believe there's a solution to this problem. it's a $1.3 billion worth of score space that the state and local deduction represents. and what we need to do is maybe we can find the common ground where we can come to a compromised solution that stands for the hard identify working taxpayers of the districts across new york as well as the city of new york. and i think there's a path there. and i will tell you, there's been very positive conversations amongst members that say we've got to get tax reform done for all americans but at the same time, we have to see how this impacts the tax deduction on our constituents that we represent
in washington. liz: again, i think what bothers a lot of people is that corporations would still be allowed to deduct it. but individuals couldn't. and when asked about that, president trump said, well, you have to let is corporations do it, otherwise, they'll go out of business. if you don't let individuals do it, some of them may go bankrupt. this is an issue. but let's dovetail to the fact that people are now wondering about this fourth tax bracket that president trump talked about a couple of weeks ago. but that paul ryan, speaker of the house, kind of confirmed today this morning, in fact, on a television -- during a television interview. what do you consider an ahigh net worth level in a bracket that would be that fourth so-called tax on the wealthy? >> well, you know, i was sitting right next to the president when he made the first public announcement that the wealthy is not the goal of getting tax cuts to the wealthy, that the wealthy may have to pay a little bit more at the end of the day. and what we're talking about with this fourth bracket is to make sure we honor that
mission. that we're going to relieve the tax burden on hard-working americans that we represent across the nation. and when we talk about the highest bracket being put back into the mix, i think that's a legitimate recognition of where we stand, and let's face it. the other side has said repeatedly they want to make sure that the top 1% pay their fair share, and you see warren buffett out there. let's honor what he wants to do and pay a little bit more and get the relief for 300 million americans. liz: let me interrupt you here for a moment, congressman. you're looking at secretary of state defense jim mattis and john mccain, the senator from arizona. they're standing, folks, -- this is breaking news. live pictures. they're standing outside senator mccain's office. brad, what are they talking about here? i can't hear. >> they are talking about the firefight on october 5th that killed four u.s. soldiers -- i just want to listen in because, of course, senator mccain is head of the senate armed services committee.
>> regular meeting is that we can work together in these very difficult and challenging times. i am proud to know him. >> secretary mattis, would you say it's a matter of days -- >> thank you very much. thank you. thank you. >> secretary mattis, would you say it's a matter of hours or a matter of days or months? liz: reporters are trying to get an answer about an investigation that is now being launched into that firefight where at least one service men was left behind for 48 hours in niger after the firefight and there's no answer as to a timeline for that. representative reid, did you hear that? >> i did. that is news to me, and i'm sure we'll get to the bottom of it because we talk about our men and women that are in harms way, and it unites us as a country. gets us to the bottom of anything that's occurring to make sure that we do our best to make sure they come home safe and sound in future events. liz: absolutely. we want to thank you very much representative tom reid of new york and fair and balanced coming up. we are going to be speaking with democratic representative brad sherman of california
because now that budget plan gets kicked back, of course, reverts to the house. they've got to fix it and then send it back to the senate. it's like a pong game. remember. okay.? atari? come on. we'll see. it's one of the oldest slogans in corporate america with the closing bell 47 minutes away, ge, we bring good things to life. but should the last-remaining original dow stock left in the index go the way of its lightbulb? our traders coming up
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so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. liz: whoa, breaking news. and this is stunning if you've been watching us all day long, and i hope you have. shares of general electric clawing their way back into the green. just a few minutes ago after
hitting a two-year low earlier on all kinds of really bad news. you can see intraday it started off just a disaster. the company says it has a divest of $20 billion of business over the next two years. earnings missed. adjusted earnings forecast well below 30% of expectations. a ton of short interest. people betting down this stock. just about everyone at some point, including most of you watching have held this stock in your portfolio. it has been shaping up to the one of wall street's most epic makeovers with new management. so during that earnings call, ge's new ceo john flanry said quote our results are unacceptable to say the least. things will not stay the same at ge. and as we mentioned, the shares completely plummeted. but now, they are bashing back their way through that negative ceiling, and i'm still looking at green right here. i'll be at almost flat. ge is fighting back, even though it's still the worst performer on the dow jones industrials. can it turn things around and
still be the shining star of your portfolio? is now actually when times are darkest, the time to buy? we bring in the floor show and our traders. i want to begin first with you, john. are you surprised by this claw back in this final hour? >> listen, when you look at a stock like ge and what they've been through and if you look at over a long period of time, they've become many different things to many different people, and their not very good at all of them; right? they have to find what their sweet spot is really and focus on that. so pairing down 20 billion in businesses is the right idea. but what investors have to understand is that's a really big cruise ship, and it takes a long time for that to turn. so, yes, this news is beneficial i think short-term and long-term. but you're not going to really see the results for quite some time and still, until they start really, definitely exiting some of these businesses that they say they're going to. liz: chris, the shorts. pumped up $100 million alone today in their bets against ge. bringing the short interest to
more than $3 billion. this looks like a classic maybe buffett moment, although do you see it differently? and does this stock even belong in the dow anymore? did i even say that? i mean, people are asking that question. it's the cheapest stock in the dow. >> yeah. we'll see. well, there's an old theory buy the dip on a two-year low, you're going to see people step in and there's a lot of buying interest. and what you put out, that's a huge short bet. so you have to think what's going to cause it to spike up? if we get any sort of move on 2,, 4, 5, 6%, that could cause everybody who came to the party late to have to buy back. so you wouldn't think a company with a market cap like that would be a day trading stock, but you might get movement here. and let's face it. we have a whole lot of movement, you have interest in that. so you've got your chance here. if you want to step in and buy the dip, you know, have at it. but that's a longer term outlook, i think what the gentleman said before me is right. this is going to take a while
to turn around. but certainly, if you're a long-term guy, step in there and buy some. and as far as whether or not it belongs in the dow, that's a whole 'nother -- we could talk about two or three hours what stocks belong in the dow. long-term about the s&p. >> i must demand a two or three hour show. maybe sunday night. you and me, chris. allen and harry, i'm just looking at oil right now. it's starting to show a little bit more muffle, although, it's kind of flat today on the session. due to the fact that we still have less robust demand here to balance it is outta what's going on in iraq and the kurds in a very oil-rich area. but the rig count, is it balanced right now? we're going to talk a little bit more about that later. but what do you foresee here? we're at 51.90 in the aftermarket session. >> what i've been seeing right now in crude oil is buy the dips. we've been talking about this on the show for months now. when it got to
$44.44.50 everybody said lower for longer and all of the big players said they got flat. you knew that was the bottom of the market. the reason why is if it can't go any lower and everybody's getting out, there's some real strong buying. and there was, and we've been saying it all along. however, we also said that 52 to 52.5 was the get out point. we're here. we've been here a couple of times. so right now, you're going to see flat. so what i'm doing is i'm buying dips, but i have to be patient. i bought a dip down to 49, but there hasn't been too many dips. that's why patience is what's going to be important here. so that's what i'm looking at right now. liz: well, i hope you guys are looking at a relaxing weekend for once. john, chris, allen, thank you very much. >> have a nice weekend. liz: we need to watch wall street week tonight. maria bartiromo is talking tech with mark herd, the ceo of oracle. 8:00 p.m. eastern and, of course, oracle is one of the biggest in the cloud, and it's a big battle going on right now. and stick around for the property man. bob massie on what it will
cost you to buy a historic abandoned gold mine. that's 8:30 p.m. eastern only on fox business. 38 minutes. actually closer to 37 minutes right now before we bring the closing bell, united health group the biggest on the dow at this hour. sketchers sprinting at high speed. the casual athletic footwear company enjoying its best day ever, thanks to its third quarter earnings report that beat all expectations out there. a 40% gain on the stock right now? unbelievable. sketchers up $99.77 it got a bunch of upgrades in a single day. the california-based sketchers wiping out its year to date losses in a single day. so for this of you who bought it yesterday. nice job. and california's los angeles dodgers are world series bound beating the chicago cubs 11-1 in game five of the championship series thanks to three home runs by one guy.
hernandez. but his post-game shout out to one small business may just help flow big money to the victims of hurricane maria. we're going to explain that and talk in an exclusive interview with that business owner. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone
liz: has a fan's reaction at a game turned into a viral sensation until last month when one silent protest from a mets fan at a yankee's game no less turned into an internet sensation. gary denier, a courthouse assistant, he's from queens. he gave the numbs down after the yankees hit a three-run homer and season push against
the tampa bay raise. tonight as the yankees make a run at the world series, the bronx have turned that world-recognized nonverbal diss of something bad into something good. they're now all doing it every time they score a run or hit. one small business said we're getting in there and reaping a profit. brett is the founder and ceo 500 level, a unique t-shirt company capitalizing on the gesture. all right. brett, so as a mets fan, this fellow gary denier ends up at the yankee's tampa bay game due to an emergency-changing venue from florida to city field, which is where the mets usually play because of hurricane irma. he hates the yankees. so when they scored instead of booing, this picture was captured by tv cameras. he stoically silently giving the thumbs down gesture. you saw that and thought
what? >> first of all, thank you for having us on your show. this is great. we partner with todd frazier, and i can't take all the credit. todd frazier was instrumental along with our artists in coming up with this great design and promoting it both on his website shoptoddfrazier.com and 500 levels. so it was really a collaboration with the player, which is a dream come true. liz: my floor director is a yankees fan, so he insisted on wearing this t-shirt so we can see it. so you were stoic until you just yelled that. but it has the pinstripes, the thumbs down. tell me how you started printing it, where you got the actual artwork, and how your business model works so that everybody kind of seems involved. all of your customers as well. >> so that's a great question. we partner with, you know, over 700 different artists. so obviously, we have great diversity in our designs. like i said before, we can't
take all the credits on this design. this is todd frazier-influenced, obviously. and he took that from the man in the stadium. but, yeah, we circulate, and we get designs from a myriad of artists across the world that are generally topical or current plays that have occurred in games either the night before or the day before. and so that's really the genesis. liz: okay. tonight is the big game, and it's the astros versus the yankees game six. so here's my question. how is this going to work? are you printing a bunch of these in anticipation that the yankees will win? do you call the vegas oddsmaker so that you're not left without enough inventory? >> actually, that's the luxury of our business. we print on demand. so we don't carry inventory. we print as the demand comes. and so we'll be running ads and hopefully catching the
wave as the yankees win another game tonight. liz: and mr. hernandez, enrique hernandez of the dodgers, it doesn't just go for the yankees thumbs down t-shirt, he made a t-shirt and suggested you sell it related to the hurricane; correct? >> correct. correct. has been an amazing partner along with other groups like select sports group and, you know, it -- the dream come true is being able to partner with all of these organizations and players and, obviously, we're huge fans of all sports. and when you get to partner with a guy like hernandez who hit three home runs last night, i mean, how great is that? liz: well, i'll tell you what's really great is you have a redhead. dodgers justin turner t-shirt because he has that wild red beard, which is amazing. and i want to know how that one's selling. >> it's selling amazingly. obviously, the dodgers win. it's bittersweet. i'm a cubs fan.
but -- liz: oh, you had your chance. >> i know. i'm happy when all of our products sell. and that one, especially, is doing really great, and i think it's a true testament to the artist. it's really creative. i love the design. liz: go indians. what? hold on. why aren't they part of this discussion? brian, good luck to you. thank you. >> thank you. liz: i have my shirt. i'm ready to go. even though i have to root for dodgers because i'm from los angeles, i'll give it to my son who's a yankee's fan. closing bell in 27 minutes. we like those small business stories. dow jones industrials up 144. we are looking at big gaining all around right now with 27 minutes left. house speaker paul ryan. we've mentioned this at the top of the show. confirmed a major change to the republican tax reform plan. a fourth tax bracket for high-income earners to ensure that the ultra rich do not see a big rate cut. will this move be enough to
get at least some democrats onboard? we're going to ask one of them. congressman brad sherman of california standing by on capitol hill. what he says it will take to get his party members to cross the aisle on tax reform. six in the morning. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.
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decline in 14 months. and a sweet deal just in time for halloween. u.s.-based company of lemon heads and red hots, well, the new owner of ne nutella. put the price at roughly $1.5 billion. congressman joining liz claman right here on countdown. keep it right here if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network. it's like 20 times faster than what most people have. i'd of said... i'd of said you're dreaming. dreaming! definitely dreaming. then again, dreaming is how i got this far. now more businesses in more places can afford to dream gig. comcast, building america's largest gig-speed network. now more businesses in more places can afford to dream gig. when this guy got a flat tire in the middle of the night. hold on dad... liberty did what?
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liz: back by popular demand. you just can't look at this guy enough. the 54-year-old courthouse assistant and mets fans look at him with his look thumbs down gesture after a big yankees play. so will he get to root against who? the yankees? will it be the astros? l.a. dodgers clinch the world series position last nature. and let's take it right now to
california to talk about tax reform. the stated red line for democrats has been very clear for several months, and that is no tax cuts for the rich. for the democratic perspective, congressman brad sherman of california joins us now in a fox business exclusive. hey, congratulations to the dodgers. >> we'll win you back, liz. stop rooting for the indians. liz: i like the underdogs, congressman. speaking of underdogs, you and the democratic party said the underdogs are the middle and less wealthy classes. they should be the ones to get the tax cuts and that there should be no tax cuts for the rich. that was the red line. now that you see that paul ryan is stating it today, president trump has stated it, that there may be that fourth tax bracket of high, high rich people and if they would be subject to more taxes here, are you ready to at least consider going to the table on the tax reform plan?
>> no. the opposition to this tax bill would be bipartisan. whether any democrat will support it, i don't know. because it's going to cut trump's family taxes by over a billion dollars just by eliminating the state tax. and it slashes the tax rate on exxon from 35% down to 20%, almost a 50% reduction. you slash exxon's taxes, you slash taxes from multibillionaire families, it's hard to sell that. liz: but they're not, it appears, to slash taxes. except that they eliminated the estate tax which, you know, really does affect a very small percentage of families when they are hit with it. but nonetheless, there are some that would have to give up their -- people always use the farmer situation. but trust me, there are a lot more than farmers who get hit the with estate tax, and there are smaller businesses. but i don't understand quite clearly why the democrats once
they are faced with this fourth bracket that would tax the very high rich or put them in a higher tax bracket of why you would then still say that you won't go to the table. >> we'll go to the table. but a trillion and a half dollar increase in our budget deficit, slashing taxes for giant corporations, eliminating estate taxes for the trump family and for other families and most of that money comes in from families worth more than $100 million from one family. that -- that's hardly a starter for democrats. liz: well, what could they add as a sweetener to it that could change your very strong opinion here? >> i would like to see immediate american taxes of the money earned by american corporations abroad. if we did that consistently, then we wouldn't have all of these factories moving overseas and finally, we get the kind of labor shortage that we need in america to
push up wages. liz: well, president trump is really wanted and tried to lure companies back by lowering the tax rate so that they didn't flee to low-taxed countries. >> he's going to a zero tax for what they make overseas. so right now, we have a -- liz: that could be compromised. there might be willing room there to at least make them pay something. >> we would like to see that and on a continuing basis. he has an immediate small tax on the profits they've earned overseas. but then he goes to zero for whatever they do in the future. so if you're planning for the future, yes, you'll pay a little bit lower tax on a factory in the united states. but you'll pay zero, a massive reduction from 35% down to zero for the factory you build overseas. that is an attack on everyone who is fooled into voting for donald trump. liz: oh, boy. but, listen, we can only hope that we do see some relief for the middle class. it's good to --
>> good to be with you. liz: closing bell ringing in 16 minutes. it's been nearly two months now since hurricane harvey blasted through the houston area. historic rains virtually shutting down gulf oil operations. 25% of the nation's refining capacity offline at the height of the storm. seven weeks later, yes, the picture is looking better, but not for all. coming up, drilling services canary with footprints from texas to north dakota giving us the real deal on where things do stand post harvey. it matters to how much you'll pay for gasoline. prudential asked these couples: how much money do you think you'll need in retirement? then we found out how many years that money would last them. how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9?
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liz: so now it has been nearly two months since hurricane harvey struck houston and shut down 25% of the nation's refining capacity with pipelines that deliver energy around the u.s. and shutter the critical shipping ports of houston, corpus christi. so at the time, prices skyrocketed because refineries couldn't come back. well, they've worked to come back moment by moment, bit by bit after getting knocked out by these multiple hurricanes. time to bring in a guy who's right in the thick of this business. canary coal mine or in this case the oil field. ceo of drilling services company canary, and we're joined by dan ever heart. how does it look now, dan? >> well, thank you for having me back. i think it looks a little bit better. but there's still definitely a lot of room to run to get back to where we were. so just to put it in perspective, these u.s.
government released 5.3 million barrels of oil to help cover the refinery production shortage post hurricane harvey. the production, you know, was off about 3.5 million barrels in terms of the refinery capacity post hurricane harvey. and today, here we are two months later only a million five of that 3.5 million has come back so far. >> true. and when we look at the price of gasoline a year ago, it was more like i want to say $2.23; right? per gallon, and that's sort of the retail price here. now it's 2.46. >> uh-huh. yeah. so it depends a little bit on what state you're in. but, yes. liz: so, yeah, we're looking at prices that are marginally higher here. but let's talk about the so-called imbalances because we didn't have refining capacity for a while, so we didn't get gasoline. then once they started up again, we had a shortage, a
little bit of shortage of crude because that started to go through the refining systems; correct? so are we rebalanced yet? >> yeah, i think the u.s. market and the global markets are rebalancing, and i think it's partially a hurricane story. but even bigger than that, it's a glory supply store relating to the u.s. shell and the oil bust that started in 2014. i'll tell you that i think that the markets have become more balanced. the u.s. stockpiles peaked in march about 400 -- peaked in march, and they're down about 15% to 456 million barrels from the march high. so i think the drawing down the u.s. stockpile shows that the market is now more towards undersupply than oversupply, which is what caused oil to, you know -- the precipitous fall that happened in 2014 and 2015. so i think we're just entering an inflection point and a point where the market is undersupplied with crude.
>> well, we've been talking about tax reform all day today because, of course, last night the door was open because senate republicans were able to pass a budget in some form but now has to be tweaked by the house and back to the senate. but putting that aside, what would tax reform mean for the oil and energy industry and companies like yourself? >> sure. well, i think, you know, for our industry specifically, i think the idc is the intangible drilling cost being able to deduct that is a capital expenditure is huge to keep the industry drilling to find new resources and production to keep gasoline prices low. i also think as part of the tax reform package, one of the things on the table is opening up, and i think that could potentially bring in up to a billion in new revenue during the first ten years, and i think that could potentially be part of the way we pay for tax reform that lowers taxes. i also think just as an average american, i think, you know, tax reform and tax simplicity could take some of the frictional cost out of the
tax system and spur the economic growth. you know, we had gdp growth of almost 8% after reagan did the tax reform in 1986. so we haven't seen gdp growth rates anywhere near that in the reason future. liz: and, of course, tax cuts done by president kennedy worked nicely. we'll wait and see. dan, thank you so much. >> thank you. liz: the canary ceo. the closing bell, now we're seven minutes away from that on this friday. dow jones industrials up 141 points but the s&p is showing real muscle as well at this hour. got to watch for that because it could be another record. s&p up 10.5 points right now. bank of america, merrill lynch, that's actually the leader on the s&p. but it's also the leader in predicting a major heartbreak for investors by valentine's day. should you be preparing for an unhappy february 14th? market guru sam standing by to tell you. countdown coming right back. [vo] when it comes to investing,
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♪ liz: with five minutes to go before the friday closing bell. we need to look, yes, dow, s&p at record close. right now we're at 6629.94. to see a record it has to finish above 6624.2 it. we're there right now. we're slightly above it. look at last two numbers. has to be above .22. so that is good. with markets crossing out another blockbuster week. we're seeing sixth consecutive weekly win for the dow and s&p, nicole, so much happened this week, not the least of which was dow 23,000. >> we have dow 23,000. budget moving forward and tax
plans and records for the dow and s&p. s&p 500 is up 3/4 of 1%. those are the weekly winners. names such as ibm, earnings beat which was up about 10% this week. united health, up 10%. travelers up 5%. certainly a week of records. this will be the sixth weekly gain for the dow jones industrial average and s&p 500 for that matter. liz? liz: we may break hearts right now, nicole. market bulls, you specifically need to prepare to have your hearts broken by valentine's day, says bank of america merrill lynch. their researchers predicting 10% correction by mid-february, citing federal reserve rate hikes. sam stovall, strategist. 10%, four 1/2 months is little extreme or no? >> liz, what you're doing.
telling me i will get a rock in my halloween bag and coal in my stocking? i will have a broken heart? maybe that makes me see red. let's put things if perspective. we traditionally have five or 10% every year. show you i have no social life i counted up, we have 56 of them since world war ii. declines of 10 to 20%. the amazing thing on average we to the back to break even in average of only four months. we could go through the 10% decline now and we would in record high territory by valentine's day. i would really look for something like that, and take advantage of it. liz: sam, you calmed me down. i was never nervous, we get these corrections and they're healthy for the market. sam, you get to witness it. another record close for both the dow and and s&p 500.
right now looks like a win for all three major indices. i hope you have a terrific weekend. [closing bell rings] that will do it for the claman countdown. i will see you guys on monday. have a good one. david: it is another record. dow looks like closings up in the after-hours, 163 points. melissa: nice. david: and a 1/2. not bad for going into the weekend this is the fifth record close in a row. a new record for s&p as well. nasdaq could see one as well. we are really close on that one. i'm david asman. happy friday. melissa: yes, i'm melissa francis this is "after the bell." more on the big market movers. here is what else we're covering during this very busy hour. the white house now defending general john kelly's emotional response to the president's call with a gold star widow, as if you have to defend that, as the mainstream media continues to hammer away. more on a heated exchange at